Academic Business World International Conference 2007

Articles Presented
Article Title Link to Article
A Definition and Analysis of Student Academic Teams http://ABWIC.org/Proceedings/2007/ABW07-185.doc
A Model to Determine the Skills Needed by Managers in Human Service Organizations http://ABWIC.org/Proceedings/2007/ABW07-257.doc
A Regional University’s Faculty Driven,
Capital Efficient, Sustainable Assurance of Learning (AOL) System
http://ABWIC.org/Proceedings/2007/ABW07-286.doc
A Study and Investigation of Learned and Inherent Traits, Behaviors, and Skills of
Adolescent Public High School Students that are Deemed to be Essential to Successfully
Secure and Maintain Employment
http://ABWIC.org/Proceedings/2007/ABW07-245.doc
A Study of College Student Business Media Habits and Perceptions of the Wall Street
Journal: Part 2
http://ABWIC.org/Proceedings/2007/ABW07-317.doc
A Survey of the Status of Supply Substitutability in U.S. Supreme Court and U.S. Circuit
Courts of Appeal Cases
http://ABWIC.org/Proceedings/2007/ABW07-212.doc
A Visit to the Ancient, Opportunities for Mixed Economy in Africa: Can Reforms be
Managed and/or Sustained?
http://ABWIC.org/Proceedings/2007/ABW07-221.doc
Accounting Blogging: Status and Trends http://ABWIC.org/Proceedings/2007/ABW07-249.doc
Accounting Students Gain a Competitive Edge Competing in Case Study Competitions http://ABWIC.org/Proceedings/2007/ABW07-254.doc
Thursday, June 07, 2007 Page 1 of 12

Association for the Study of Religion, Economics, and Culture

ANNUAL MEETING PROGRAM
Nov 1 – 4, 2007


Thursday, November 1

6:00-9:00pm Registration in Regency Ballroom Foyer Galleria B

8:00-10:00 Reception with Cash Bar in Regency Ballroom Foyer Galleria B


Friday, November 2

8:00am-3:00pm Registration Galleria B

9:00am-4:00pm Book Exhibit Buccaneer B and C


FRIDAY MORNING, 8:30-10:00


A-7 Spiritual Capital Esplanade I

Convener/Discussant
Kimon Sargeant, Templeton Foundation, ksargeant@templeton.org

‘Risk, Religion, and Regional Development’
Brian J. Osoba,University of Texas at El Paso, bosoba@utep.edu

‘Spiritual, Human, and Physical Capital: Are They Complementary Factors in Economic Growth?’
Carl R. Gwin, Pepperdine University, Gwin@pepperdine.edu
Wafa Hakim Orman, Baylor University, Wafa_Orman@baylor.edu
Charles M. North, Baylor University, Charles_North@baylor.edu

‘Religion and Economic Development: Evidence from the Early Twentieth Century’
Robert Subrick, James Madison University, jsubrick@gmu.edu


A-8 New Methods for the Study of Religious Belief,
Behavior, and Institutions Esplanade II

Convener/Discussant:
Chris Bader, Baylor University, Christopher_Bader@baylor.edu

‘Religion in Virtual Worlds’
William Sims Bainbridge, National Science Foundation, wsbainbridge@yahoo.com

‘Reducing Religious Extremism: Necessary Conditions and Countervailing Policy’
Michael Makowsky, George Mason University, mmakowsk@gmu.edu

‘Strategic Congregational Management’
Hernan Bejarano, Penn State University, hbejainpenn@gmail.com



A-9 Student Research #1 Esplanade III
Convener/Discussant:
Robert Stonebraker, Winthrop University, stonebrakerr@winthrop.edu
‘Did Religion Have Anything to Do with Success and Failure in Post-Communist Transition?’, Leonid Krasnozhon,George Mason University, lkrasnoz@gmu.edu

‘A Sacrificial Death?’
Jason Wollschleger, University of Washington, jason.etc@gmail.com

‘Overcoming Selfishness: Religion and the Alternatives’
William McBride, George Mason University, wmcbride@gmu.edu



FRIDAY MORNING, 10:15-11:45

B-7 Religion, Values, and Economic Development Esplanade I

Convener/Discussant:
Jared Rubin, Stanford University, jrubin@stanford.edu

‘Values, Beliefs and Development’
Jeffry Jacob, College of St. Benedict, St. John’s University, jjacob@csbsju.edu
Thomas Osang, Southern Methodist University, tosang@mail.smu.edu

‘Corruption, Faith, and Economic Growth’
John E. Stapleford, Eastern University, jstaplef@eastern.edu

‘Efficiency Comparison Between Conventional Development Aid and Missionary Work’
Esa Mangeloja, University of Jyvaskyla, eman@econ.jyu.fi
Tomi Ovaska, Youngstown State University, tpovaska@ysu.edu

‘International Christian Organizations and the Development of Sub-Saharan Africa--A Critical Study’
James A.P. Tiburcio, Universidade de Brasilia, jamestiburcio@yahoo.com


B-8 Demography, Development, and Gender Esplanade II

Convener:
Brian Grim, Pew Forum on Religion & Public Life, bgrim@pewforum.org

‘Demographic Change and Religion in Central Asia Following the Transition to a Market Economy’
Kathryn H. Anderson, Vanderbilt University, kathryn.anderson@vanderbilt.edu
Linda Carter, Vanderbilt University, l.carter@vanderbilt.edu

‘Religion, Attitudes Towards Working Mothers and Wives’ Full-time Employment: Evidence for Germany, Italy, and the UK’
Guido Heineck, University of Erlangen-Nuremberg, guido.heineck@gmx.net

‘The Church versus the Spirit: The Impact of Christianity on the Treatment of Women in Africa’
Carrie A. Miles, George Mason University, carrie@econzone.com

‘Human Capital, Religion, and Contraceptive Use in Ghana’
Niels-Hugo Blunch, Washington and Lee University, blunchn@wlu.edu



B-9 Book Session: “God from the Machine” Esplanade III

Convener
Laurence R. Iannaccone, George Mason University, larry@econzone.com

Panelists
Chris Bader, Baylor University, Christopher_Bader@baylor.edu
Michael Makowsky, George Mason University, mmakowsk@gmu.edu
Laurence R. Iannaccone, George Mason University, larry@econzone.com

Author/Response
William Sims Banbridge, National Science Foundation, wsbainbridge@yahoo.com


12:00-1:00 New Members Lunch Regency 2


FRIDAY AFTERNOON, 1:15-2:45


C-7 Student Research #2 Esplanade I

Convener/Discussant:
Michael McBride, University of California-Irvine, mcbride@uci.edu

‘Religion, Altruism, and Social Capital’
Nathanael Smith, George Mason University, Nathan_Smith@ksg03.harvard.edu

‘Economics of Philanthropy: Evidence from the Late-Ming and Qing Dynasties’
Yang He, George Mason University, hyang6@gmu.edu

‘Rational Irrationality as a Habit: A Dynamic Approach Towards Belief Formation’
Dalibor Rohac, George Mason University, drohac@gmu.edu

‘ “Yield Not to Temptation”: Religion as Anti-Addictive Social Capital’
SangHo Yoon, George Mason University, syoon@gmu.edu


C-8 Political Economy Esplanade II

Convener/Discussant:
Robert I. Mochrie, Heriot-Watt University, U.K, r.i.mochrie@hw.ac.uk

‘The Political Manipulation of Religion and its Limits:Modeling How Policy Incentives Change the Priorities of Faith-based Service Organizations’
Michael McGinnis, Indiana University, mcginnis@indiana.edu

‘Assessing the Impact of Religion in Foreign Policy: A Religious Economy Analysis’
Carolyn Warner, Arizona State University, cwarner@asu.edu

‘Greedy Sects and the Jealous States: The Political Logic of Religious Regulation’
David Smith, University of Michigan, davidsth@umich.edu

‘Democratic Governance and Organizational Success: The Industrial Organization of Religious Firms’
William R. Clark, University of Michigan, wrclark@umich.edu



C-9 Economics of Religion #1 Esplanade III

Convener/Discussant:
Daniel Hungerman ,Notre Dame, dhungerm@nd.edu

‘Egalitarianism and Economics: American Jewish Families’
Carmel Chiswick, University of Illinois at Chicago, cchis@uic.edu

‘Sects and Violence’
Eli Berman, University of California, San Diego, elib@ucsd.edu

‘Religious Roots of the Print Revolution: Why Some Adopted Printing and Others Waited 300 Years’
Robert Woodberry, University of Texas- Austin, bobwood@mail.la.utexas.edu
"Interest Bans and Institutions: An Economic Theory of Inhibitive Norm Persistence in Islam & Christianity"
Jared Rubin, Stanford University, jrubin@stanford.edu

FRIDAY AFTERNOON, 3:00-4:30


D-6 Religion and Rational Choice # 1 [SSSR/ASREC] Esplanade I
Convener/Discussant:
Brooks B. Hull, University of Michigan-Dearborn, bhull@umd.umich.edu


‘Does Low Religious Market Share Boost Recruitment Efforts?’
Jonathan Hill, University of Notre Dame, jhill3@nd.edu
Daniel V. A. Olson, Purdue University

‘Free riding in religious congregations: Can it be eradicated?’
Sergio Figueroa Sanz, Instituto Tecnologico Autonomo de Mexico, sergiofigueroasanz@yahoo.com

‘The Marketplace of Religion: Reflections on the Rise of the Dge lugs School in Tibet’
Rachel M. McCleary, Harvard University, mccleary@wcfia.harvard.edu
Leonard W.J. van der Kuijp, Harvard University, vanderk@fas.harvard.edu



D-7 Religion and Philanthropy Esplanade II

Convener/Discussant:
Christine Brickman, Catholic University of America, cbrickma@gmu.edu

‘Passing the Collection Plate: An Examination of Weekly Church Offerings’
Paul J. Olson, Briar Cliff University, paul.olson@briarcliff.edu

‘Faith, Hope, and Charity’
Thomas M. Smith, University of Illinois at Chicago, tomsmith@uic.edu

‘Diversity and Crowd Out: A Theory of Cold-Glow Giving’
Daniel Hungerman ,Notre Dame, dhungerm@nd.edu

‘Religion, Exchange, Coexistence and Growth’
Resit Ergener, Bogazici University, resit.ergener@boun.edu.tr



D-8 Religious Conflict, Commitment, and Cohesion: Evolutionary
and Economic Approaches [ASREC] Esplanade III

Convener/Discussant:
Richard Sosis,University of Connecticut, richard.sosis@uconn.edu

‘Ingroups and Outgroups: How Religion has Cohered and Cleaved’
Azim Shariff, University of British Columbia, azim@psych.ubc.ca

‘Psalms for Safety: Magico-Religious Responses to Threats of Terror’
Richard Sosis, University of Connecticut, richard.sosis@uconn.edu

‘Religion and Support for Suicide Attacks’
Ara Norenzayan, University of British Columbia, ara@psych.ubc.ca
Ian Hansen, University of British Columbia, ihansen@psych.ubc.ca
Jeremy Ginges, New School for Social Research,

‘Exploring the Relationship between Religious Commitment and Cooperation: Findings from Northeastern Brazil’
Montserrat Soler, Rutgers University, carmin@eden.rutgers.edu


5:30-6:30 H. Paul Douglass Lecture Regency Ballroom (5-7)

"The Four M's of Religion: Magic, Membership, Morality, and Mysticism”
Randall Collins, Dorothy Swaine Thomas Professor in Sociology, University of Pennsylvania.

6:30-7:30 Reception with Cash Bar Galleria B


ASREC Friday Evening Social
9:00-11:30 PM
Harborview Room



SATURDAY, November 3
Saturday Morning, 8:30-10:00


E-7 Religion and Rational Choice # 2 [SSSR/ASREC] Esplanade I


Convener/Discussant:
Richard Sosis,University of Connecticut, richard.sosis@uconn.edu

‘Greek Blood Sacrifice as Economic Regulation’
John Rundin, University of California - Davis, jsrundin@ucdavis.edu

‘Religious Cognition, Prisoner’s Dilemmas and The Stag Hunt’
Joseph Bulbulia,Victoria University of Wellington, joseph.bulbulia@vuw.ac.nz

‘Ambiguity and Religious Markets’
Zsolt Becsi, Southern Illinois University, becsi@siu.edu

‘Religion Trumps Race in Implicit Prejudice’
Azim Shariff, University of British Columbia, azim@psych.ubc.ca


E-8 Religious Firms and Markets Esplanade II

Convener/Discussant:
Mark Regnerus, University of Texas, regnerus@prc.utexas.edu

‘Market Size, Market Structure, and Competition: Local Religious Markets in Nineteenth Century Scotland’
Robert I. Mochrie, Heriot-Watt University, r.I.mochrie@hw.ac.uk
John W. Sawkins, Heriot-Watt University,
Alexander U. Naumov, Heriot-Watt University

‘Free Riding, Market Structure, and Member Commitment in South Carolina Churches’
Brooks B. Hull,University of Michigan-Dearborn, bhull@umd.umich.edu
Jody Lipford, Presbyterian College, jlipford@mail.presby.edu

‘A Model of Religious Investment to Explain the Success of “Megachurches”’
Marc von der Ruhr, St. Norbert College, marc.von-der-ruhr@snc.edu
Joseph P. Daniels, Marquette University, joseph.daniels@marquette.edu


E-9 Religion, History, and Economic Development Esplanade III

Convener/Discussant:
Carolyn Warner, Arizona State University, cwarner@asu.edu

‘How the Medieval Church Fostered Cooperation, Built Institutions, and Contributed to the Economic Ascent of Western Europe’
Charles North, Baylor University, charles_North@baylor.edu
Carl Gwin, Pepperdine University, carl.gwin@pepperdine.edu

‘The Afterlife as a Disciplinary Device: On Purgatory and the Credibility of Postmortem Prayers in Chantries’
Michael McBride, University of California-Irvine, mcbride@uci.edu
Gary Richardson, George Mason University, garyr@uci.edu

‘Does economic development cause a decline in religiosity? Explaining the separation between Church and State in France in 1905’
Raphael Franck, Bar-Ilan University, franckr@mail.biu.ac.il

‘Cultural Transformations and “Islamic Capitalism” in Malaysia from 1971 to the Present’
Ermin Sinanovic, United States Naval Academy, sinanovi@usna.edu




SATURDAY MORNING, 10:15-11:45


F-7 Book Session: “Who Really Cares? America’s Charity Divide:
Who Gives, Who Doesn’t, and Why It Matters” [ASREC] Esplanade I

Convener
David Mustard, University of Georgia, mustard@terry.uga.edu

Panelists
Thomas M. Smith, University of Illinois at Chicago, tomsmith@uic.edu

Daniel Hungerman, Univ. of Notre Dame, dhungerm@nd.edu

Anthony Gill, University of Washington, tgill@u.washington.edu

David Mustard, University of Georgia, mustard@terry.uga.edu


F-8 Islamic Economics and the Economics of Islam Esplanade II

Convener/Discussant:
Robert Woodberry, University of Texas- Austin, bobwood@mail.la.utexas.edu

‘Human capital development in social capital matrix perspective: A case study of Pakistan in emerging global market’
Syed Akhter Hussain Shah, Pakistan Institute of Developmental Economics, akhtar_hshah@yahoo.com
Eatzas Ahmed Quaid-I-Azam, University Islamabad Pakistan,
Muslehud Din, Pakistan Institute of Developmental Economics,

‘How ‘Islamic’ are Islamic Banks?’
Feisal Khan, Hobart and William Smith Colleges, khan@hws.edu

‘Value Change and Sustainable Moderation of Political Islam: Theory and Evidence from Turkey’
Murat Somer, Koç University, Istanbul, musomer@ku.edu.tr

‘The Beloved Enemy’
Malda Al-Sarayji, George Mason University, cidrah1@yahoo.com



F-9 ERel-Ed: Teaching Students the Economics of Religion Esplanade III

Convener:
Kristin Terkun, Hampden-Sydney College, kterkun@hsc.edu

‘ERel for graduate students’
Gary Richardson, George Mason University, garyr@uci.edu

‘Teaching an large undergraduate ERel class’
Michael McBride,University of California-Irvine, mcbride@uci.edu

‘ERel as a topic for undergraduate microeconomics courses’
Robert Stonebraker, Winthrop University, stonebrakerr@winthrop.edu

‘ERel as an interdisciplinary field of study for undergraduate students’
Carmel Chiswick, University of Illinois at Chicago, cchis@uic.edu



12:00-1:00 PM
ASREC ‘TANSTAAFL’ Luncheon
Regency 2



SATURDAY AFTERNOON 1:15-2:45


G-7 Religion and Economy [SSSR/ASREC] Esplanade I

Convener/Discussant
Mark Chaves, Duke University, mac58@soc.duke.edu

‘Faith-Based Organizations and Federal Dollars: More God for your Buck?’
Molly A. Martinez, Yale University, molly.martinez@yale.edu

‘Casino Development – Sin or Savior? Situating Economic Behavior in Religious Context’
Tracey L. Farrigan, PhD, Economic Research Service, US Dept. of Agriculture, tfarrigan@ers.usda.gov

‘Max Weber and Islam: The Paradox of Economic Development in Islamic Societies’
Ayman Reda, Grand Valley State University, redaa@gvsu.edu

‘(Mis)marketing policy: How megachurch growth has changed American politics’
Mara Einstein, Queens College, CUNY, mara.einstein@qc.cuny.edu


G-8 The Religious Factor in Contemporary American Political Conflict [SSSR/ASREC] Esplanade II

Convener/Discussant:
Laura Olson,Clemson University, laurao@clemson.edu

‘A ‘Sophisticated’ Prejudice: Anti-Christian Fundamentalism in Contemporary America’
Louis Bolce, Baruch College, Louis_Bolce@baruch.cuny.edu
Gerald De Maio, Baruch College, Gerald_Demaio@baruch.cuny.edu

‘The Changing Face of Politicized Anti-Catholicism’
J. Matthew Wilson, Southern Methodist University, jmwilson@smu.edu

‘Religion in Congress Revisited’
James L. Guth, Furman University, jim.guth@furman.edu

‘Religion, Liberalism and Incommensurable Norms’
Robert T. Miller, Villanova University School of Law, miller@law.villanova.edu



G-9 International Patterns of Religious Affiliation and Participation Esplanade III

Convener/Discussant:
Rachel M. McCleary, Harvard University, mccleary@wcfia.harvard.edu

‘A Terrible Beauty is Born: Exploring the Relationship Between Changing Religious Attributes and Emerging Social Attitudes in Europe’
Michael J. Breen, University of Limerick, michael.breen@mic.ul.ie

‘Changing Religious Identification in Australia and New Zealand’
Sarah King-Hele, University of Manchester, Sarah.King-Hele@postgrad.manchester.ac.uk
David Voas, University of Manchester, voas@man.ac.uk

‘Triangulating the World’s Most Dynamic Religious Market: Africa’
Brian J. Grim, Pew Forum on Religion and Public Life, bgrim@pewforum.org



SATURDAY AFTERNOON, 3:00-4:30


ASREC Presidential Address
Esplanade I, II, III

Convener/Introduction
Anthony Gill, University of Washington, tgill@u.washington.edu

Presidential Address
‘Faithful Measures: Toward Improving Religion Metrics’
Roger Finke, Penn State University, rfinke@psu.edu


5:30-6:30 SSSR Presidential Plenary Regency Ballroom (5-7)
R. Stephen Warner, President, Society for the Scientific Study of Religion

6:30-7:15 Reception and Cash Bar Galleria B

7:30-9:00 SSSR Banquet and Award Ceremony Regency Ballroom (1)


ASREC Saturday Evening Social
9:00-11:30 PM
Harborview Room



SUNDAY MORNING, November 4


Sunday Morning, 8:30-10:00

I-7 Religion and Identity Esplanade I

Convener/Discussant:
Raphael Franck, Bar-Ilan University, franckr@mail.biu.ac.il

‘Hostile Territory: High-tension Religion and the Jewish Peddler’
Colleen E.H. Berndt, San Hose State University, colleen.berndt@sjsu.edu

‘Identity, Collective Beliefs, and the Allocation of Resources’
Thomas D. Jeitschko, Michigan State University, jeitschk@msu.edu
Seamus O’Connell, Maynooth College, seamus.g.oconnell@may.ie
Rowena A. Pecchenino, Michigan State University, rowenap@msu.edu

‘Rational Choice Meets School Choice in the Jewish Community: The Case of Jewish Day Schools’
Bruce A. Phillips, Hebrew Union College, bphillips@huc.edu

‘Private School Choice: The Effects of Religious Affiliation and Participation’
Danny Cohen-Zada, Ben-Gurion University, danoran@bgu.ac.il
William Sander, DePaul University, wsander@depaul.edu



I-8 Economics of Religion #2 Esplanade II

Convener/Discussant:
Chuck Zech, Villanova University, charles.zech@villanova.edu

‘Religion in China Under Communism: A Political Economic Approach’
Fenggang Yang, Purdue University, fyang@purdue.edu

‘Human Capital Accumulation and the Inter-Denominational Mobility of American Jews’
Christine Brickman, Catholic University of America, cbrickma@gmu.edu

‘Public Reason as a Discursive System’
Fred Frohock,University of Miami, ffrohock@maxwell.syr.edu




SUNDAY MORNING, 10:15-11:45


J-9 Empirical Studies of Religious Participation Esplanade I

Convener/Discussant:
Eli Berman, University of California, San Diego, elib@ucsd.edu

‘Moving on Over: Geographic Mobility as a Predictor of Switching and Attendance Frequency in American Religion’
Christopher Born, Catholic University of America, 29born@cua.edu

‘Local Culture and the Maintenance and Transmission of Religious Practice’
David Voas, University of Manchester, voas@manchester.ac.uk
Daniel V.A. Olson, Purdue University, dolson@purdue.edu

‘Measuring Religious Commitment and Secularization Through Time-Use Data’
Ariela Keysar, Trinity College, ariela.keysar@trincoll.edu
Benjamin Beit-Hallahmi, University of Haifa, benny@psy.haifa.ac.il
Barry Kosmin, Trinity College, isssc@trincoll.edu

‘Praying for a Recession: The Business Cycle and Protestant Church Growth in the United States’
David Beckworth, Texas State University, db52@txstate.edu


J-10 Empirical Studies of Religious Capital Esplanade II
Convener/Discussant:
Charles M. North, Baylor University, Charles_North@baylor.edu

‘Subjective and objetive measures of religiosity and fertility choices’
Alicia Adsera, Princeton University, adsera@Princeton.edu

‘Looking Backward: Reconstructing Religious History with Retrospective Data’
Laurence Iannaccone, George Mason University, larry@econzone.com

‘The Life and Death Implications of Subsidies for Spiritual Capital’
Robert Subrick, James Madison University, jsubrick@gmu.edu



Meeting Adjourns at 11:45 AM

Trend and Issues in Islamic Banking and Finance with special reference to Arab World

Prof. Dr. M. A. Mannan
Founder Chairman
Social Investment Bank Limited
Dhaka, Bangladesh


Presentation at the Joint Conference on Financial Development in Arab Countries
March 31- April 2, 2003.
Al-Ain, United Arab Emirates







Table of Contents






Page No.

0. Abstract 3 - 4
1. Statement of the problems, hypotheses and objectives 5 - 6
2. Seven Key Conceptual and Operational Assumptions 6 - 8
3. Dilemma of Islamic Banking in Corporate Sector: An Overview 8 - 9
4. The Neglected Frontiers of Non-formal Islamic Banking. 9 - 12
5. Discovering Islamic Voluntary Sector Banking 12 - 17
6. Agenda for Action in the 21st Century 17 - 20
7. Conclusion 20
8. Resume 21














Abstract

Trend and Issues in Islamic Banking and Finance with special reference to Arab World.

Prof. Dr. M. A. Mannan
Founder Chairman
Social Investment Bank Limited
Dhaka, Bangladesh

The paper offers an alternative perspective, imperative and vision of challenges and opportunities of Islamic Banking in the 21st Century with a special reference to Arab world. This paper provides a forum for hard talk on harsh social realities. Therefore, an attempt is made to unfold some of the fundamental issues of Islamic Banking as in the corporate sector as well as a neglected area of non-formal and voluntary sector Banking in Arab world. It is argued that Islamic Banking in the 21st Century needs “discontinuous leaps” - a change in paradigm, to clear the backlog of history. It is however, felt that the Islamic Banking in Arab world will face great challenge of our time but it would create great opportunities, if and only if, it works in developing participatory economy beyond market, arrest the present trend towards rising corporate power, secularization, concentration of ownership and beneficiaries of Islamic Banking and Finance in the hands of a few in formal sector, redefine the role of Islamic formal corporate finance, rediscover new role of informal and semiformal finance, through developing tailor-made micro-credit package for re-empowerment of families of both the rich and the poor at the grass-root level, help development of voluntary sector Social Banking for mobilization and capitalization of social savings and investments.

The paper is based on seven key conceptual and operational assumptions dealing mainly with real-life realities and their concerns and consideration.

Dilemma Corporate Finance

It is felt that Islamic Corporate Banking in Arab world is getting submerged in the wave of market and running the risk marginalising social and ethical elements of Islamic Finance. While the convergence between Islamic Banks and Western Banks having Islamic window may bring efficiency in operations of Islamic Banks, Islamic Banks in Arab world are expected to face at least following five dilemma in the corporate sector:

(a) Concentration of ownership and beneficiaries of Islamic Banking;
(b) Neglecting the vast masses of people at the grass-root level;
(c) Secularizing Islamic Economics, Banking and Finance;
(d) Marginalising social, ethical and moral ingredients of Islamic Finance; and
(e) Neglecting the growth of human and social capital which reinforces shared values and stimulates caring society.

Neglected of Islamic Non-formal Banking Finance

The paper stressed the need for Non-formal Banking and explained its vast scope of operation in promoting genuine family enterprises on group and cooperative basis. Furthermore, the paper argued that Islamic Bank in the Arab world can play a very vital role in monetizing, re-activating and institutionalizing the role of Islamic Socio-Economic institutions and various voluntary and obligatory tools of redistribution of income through innovative financial instruments and management of fund such as Waqf properties development bond, Cash-Waqf Certificate, Zakat Certificate, Hajj Saving Certificate, Trust Fund and so on. This would help developing both human and social capital.

Agenda for Action in the 21st Century:

The paper advocated that Islamic Banks in the Arab world may adopt the following Action program:

I. Undertaking Family Empowerment Credit Programs at the grass-root level on a voluntary basis;
II. Global mobilization and creation of Trust Fund through sale of Cash Waqf Certificate to support education, health & research;
III. Globalization of Islamic Voluntary Sector activities with special reference to Zakat, Hajj, Cash-Waqf etc.
IV. Initiating establishment of Trading House of Islamic Chamber of Commerce under the cover of Organization of Islamic Ummah for promotion of joint venture projects, trade promotion and economic co-operation.
V. Supporting establishment of World Social Bank in the private sector mainly for mobilization and investments of Social savings of Islamic voluntary sector.

Taken all in all, the key thrust of Islamic Banks in Arab world should be directed towards development of an authentic participatory economy beyond market economy, redefine the role of Islamic corporate finance and re-discover non-formal and voluntary sector Islamic Banking.

------------ 0 ------------
Trend and Issues in Islamic Banking and Finance with special reference to Arab World.

Prof. Dr. M. A. Mannan
Founder Chairman
Social Investment Bank Limited
Dhaka, Bangladesh

1. Statement of the problems, hypotheses and objectives

This paper seeks to develop an understanding as well as to unfold some of the key issues involved in exploring the new frontiers of alternative Islamic Banking Paradigm in the Arab world with special reference to non-formal and voluntary sector banking. Islamic Banking and Finance in Muslim Countries in general and Arab world in Particular needs “discontinuous leaps” - a change in paradigm, to clear the backlog of history. Relatively speaking, a paradigm which refers to a set of premises, views, conventions and beliefs changes to meet the requirements of new social puzzles and economic realities.(2) The serious theoretical works of Islamic Economics, Banking and Finance during the last 40 years, since early 60s’ and institutional development in terms of the establishment of Islamic Development Bank (IDB), a good number of Islamic banks with interlocking relationships and Investment Companies etc. in both Arab and Non-Arab countries in ‘70’s through ‘90’s are indeed one of the major historic developments of our time. It is however, felt that there is a profound and disturbing gap between theory and practices of Islamic Banks on the ground, particularly when the point of contact of the Islamic reform is the feudal capitalist system as observed in many Muslim countries of today. As a result, Islamic corporate formal sector banking instead of gaining strength is perhaps gradually losing its distinctive character both in Arab and Non-Arab world. It appears that it is getting submerged in the wave of market economy. There is indeed a risk of destroying its distinctive character by marginalising its social and ethical ingredients. This is not to suggest that market mechanism is not acceptable in Islamic Economics, Banking and Finance. However, it is to be recognized that there is hardly any work done in understanding the dynamics of Islamic non-corporate informal and semi formal Finance and role of social capital in developing Muslim countries. It can transfer power to powerless. Recent studies showed that the non-corporate sector accounts for a substantial part of the labor force in some developing countries including Arab world. Practically, no attempt was made so far to monetize the Islamic Voluntary sector Banking and consequent securitization of its capital market. We need Islamic Banking for all by all in both Arab and elsewhere in other Muslim Countries. Non-formal and Voluntary sector Banking can help mobilization and capitalization of social savings and investments, reinforce basic values and ethics of a society and stimulate civil society. Social capital is perpetual in nature indeed.

It is therefore felt that, the Islamic Banking in the Arab world will face great challenge of our time but it would create great opportunities as well, for both Arab and Non-Arab Muslim countries, if and only if, it works in developing participatory economy beyond market, arrest the present trend toward rising corporate power, secularization, concentration of ownership and beneficiaries of Islamic Banking and Finance, redefine the role of Islamic formal corporate finance, rediscover new role of informal and semiformal finance, through developing tailor-made credit package for re-empowerment of families of both the rich and the poor at the grass-root level, help development of voluntary sector Social Banking for mobilization and capitalization of social savings and investments.

At this stage, it is perhaps desirable to throw some lights in general terms on the underlying assumptions on which this paper is based.

2. Seven Key Conceptual and Operational Assumptions

2.1 Beyond common ideas: Distinctiveness of Islamic responses to Economic problem:

The study is based on the fundamental assumption that there are Islamic responses to the socio-economic problems and that the underlying assumptions on which Neo-classical orthodox paradigm or Marxist-radical paradigm are based are either inappropriate or inadequate or incapable of explaining the Islamic concern and values in socio-economic matters(3). The fact is that in every system of thought, there are some assumptions and ideas in common with other systems of thought. It is through emphasis or de-emphasis or rejection, an identity is established. Therefore, Islamic economics, banking and Finance will have its own hypothesis. In course of scientific investigation, it may reject or accept or modify or alter them irrespective of social and economic systems.

2.2 Beyond Positive Economics

The study of Islamic economic behavior as a distinct branch of knowledge owes its origin to the very ideology of Islam derived directly or indirectly not only from the Quran and Hadith and Sunnah (i.e., the sayings and tradition of the Prophet) but also from “Jima” (i.e., consensus based on agreed practice) Qiyas (i.e., analogy, and “Ijtihad” (i.e. fresh thinking), as sources of Islamic laws. To Muslims, the Quran is the “revealed knowledge”; it is given. While this “revealed knowledge” is beyond the scope of positive economics, the acquired knowledge may be subject to test and critique(4) . This view of “Islamic man” is indispensable for functioning of Islamic Economics, Banking and Finance within the framework of the totality of human situations at an earthly macro level and dual notion of accountability (i.e., life on earth and life hereafter) on the spiritual level.

2.3. Beyond Market

Free market mechanism based on effective demand is linked to the affluent, making resources available to those who can buy them and not necessarily to those who need them and that the market is either inefficient or ineffective or indifferent in providing all aspects of basic needs with which Islamic market is concerned. Thus neither perfect competition nor perfect co-operation model meet the goals of an Islamic economy. An optimal mix of “supervised” competition, induced and voluntary co-operation and critical control may provide a better basis for Islamic economic analysis. There is in fact, no rule for optimal mix or trade off between 3cs’ (i.e., Co-operation, Competition and Control)(5). The paper also presupposes the existence of a vast non-corporate and voluntary sector in most of the Arab and Muslim states beyond market.

2.4. Beyond Corporate power: empowering the powerless

The paper presupposes the existence of corporate power. Despite their ostensible support for open economic competition, the multinationals use elaborate strategies to retain their pre-eminent economic positions. They tend to obstruct the entry of the poor, inexperienced who are coming from the nations having little or no link with this global elite and access to global finance. Most of all, they benefit from their participation in the global corporate elite and its networks of mutual obligations. Islamic Finance and Credit should transfer power to powerless, cover those who remained uncovered.

2.5. Beyond integration of Distribution Considerations

The key thrust of economic development in Islam lies not in the integration of development and social justice via distribution, nor in viewing development with social justice as an adjustment, but in treating distributive considerations as the fundamental basis for the allocation of resources - both human and non-human, their use and maintenance(6) . This emphasis is considered to be crucial in understanding the Islamic concept of Banking Finance and Development.

2.6. Beyond replacement of Interest

The mere replacement of interest by profit-sharing may not initiate the process of authentic Islamic Banking and Development in the Arab world. On the contrary, there is real danger that the replacement of interest by the profit-sharing system may actually increase the level of economic exploitation of the poor by the rich. At its heart lies the change of attitude from individualistic and acquisitive behavior in economic transactions to an Islamic egalitarian group notion, reflected in the basic consumption behavior, production priorities and distributional strategies.

2.7. Beyond the form of Islamic financial modes

The paper presupposes that it is not the form but the content and substance of all Islamic financial technique and contracts that matter most. All the modes of Islamic financing as practiced by Islamic Banks should exhibit inter-connectedness of economic, social and ethical dimensions at their operational level. The crucial distinctiveness of Islamic Bank’s operations should lie not only in integrating economic, social and moral dimensions in every transaction, but also in controlling their results, managing and directing their consequences to achieve their desired economic justice.

The above-mentioned seven crucial assumptions are not exhaustive, yet they would provide a framework for developing an understanding Islamic Economics, Banking and Finance for the years to come not only in Arab world but also in Non-Arab Muslim Countries as well.

3. Dilemma of Islamic Banking in corporate sector: An overview

Before we discuss some of the key issues involved in the operation of Non-formal Banking in non-corporate finance and voluntary sector banking in mobilization of social savings and investments, it is perhaps desirable to throw some lights on the operation of Islamic Banks in the corporate sector in the contemporary period particularly in the Arab world. As indicated earlier that the establishment of Islamic Development Bank and a number of local Islamic Banks and Investment Companies in the 70s’ through 90s’ are, among others, one of the major historic developments in the last quarter of 20th Century. Despite their point of contact are feudal capitalist system in many Muslim countries , the impact of Islamic banks is felt both in Arab, Non-Arab Muslim and in several Western countries. A number of Western conventional banks including some multinational giants, World Bank and IMF have taken serious note of Islamic financing techniques and gathered considerable experience in this area.

The comparative advantage of conventional Western Banks over the Islamic Banks in terms of their systems, management experience and techniques of product innovation are expected to bring competitions, resulting in sharpening of the techniques and procedures of Islamic Banking modes. In the process, profitability, not profit constraint is getting dominance in Islamic Banks’ operations. The Western conventional Banks having Islamic window, lacks the knowledge and know how of ethical and moral foundation of Islamic Finance. The Islamic Bank in the corporate sector particularly in the Arab world is running the risk of getting submerged in the wave of market economy and marginalising social and ethical elements of Islamic Finance.

While the resultant convergence point may bring efficiency in operations of Islamic Banks, it is expected to bring at least five dilemma for Islamic Banks in the corporate sector:

(a) increasing concentration of ownership and beneficiaries of Islamic Banking and finance having link to global elite and its network of reciprocal obligations;
(b) crucial neglect of the vast masses of people in Muslim countries incapable of entering into market;
(c) increasing trend towards secularization of Islamic Economics, Banking and Finance;
(d) marginalising social, ethical and moral ingredients of Islamic modes of Financing; and
(e) developing barrier to the growth of perpetual social capital which expresses the shared values of a society, reinforces them and stimulates caring society in the Arab and Non-Arab Muslim Countries.

Each of the above five hypotheses can be good subject matters for empirical studies. Let us discuss in some details the frontiers of both Non-formal and Voluntary Banking which can offer complementaries to the existing Islamic Banks in solving some of the dilemma for Islamic Banks in the corporate sector in the Arab and Non-Arab Muslim Countries.

4. The Neglected Frontiers of Islamic Non formal Islamic Banking

Generally speaking, Non formal Banking deals with informal finance in non-corporate sector. The popular view of in-formal Sector activities is that they are primarily those of petty traders, street hawkers, shoeshine boys and confined to employment on the periphery of the main urban areas. On the contrary, informal activities are the way of doing things, characterized by :

i. ease of entry.
ii. reliance of indigenous resources;
iii. family ownership of enterprises;
iv. small scale of operation ;
v. labour intensive and adapted technology ;
vi. skills acquired outside the formal school system ;
vii. unregulated and competitive markets.

One important characteristics of the formal sector is its relationship to the government. Economic activities formally and officially recognized. They obtained the direct benefit of access to credit, foreign exchange concessions, work permit and a formidable list of benefits that reduce the cost of capital in relation to that of labour. Partly because of its privileged access to resources, the formal sector is characterized by large enterprise sophisticated technology, high wage rates, high average profits and foreign ownership.

The informal sector on the other hand, is often ignored and in some respects helped and in some harassed by the authorities. Enterprises and individuals within it operate have no access to the formal credit institutions. The evidence suggests that the bulk of employment in the in-formal sector is economically efficient and profit making, though small in scale. As indicated earlier these non-corporate sector which covers small scale producers and enterprise traders, small farmers and low income and middle groups of people account for a substantial part of the labour force in some developing countries(7) including many Arab Countries such as Egypt.

It is to be recognized that the top income groups to the working poor would result in new types of labour-intensive investments in both urban and rural areas. This should not only generate demand for the products of the non-formal sector but also encourage innovations in labour -intensive techniques in this sector. This is where Islamic Bank must make a conscious and planned intervention. The difference of wealth and income between urban and rural area draws migrants towards the urban concentrations, not the spread of wealth.

It is to be mentioned here that a small farmer or a small entrepreneur having no access to institutionalized source of credit establishes semi-permanent relations with suppliers and buyers, frequently at the expense of his profit and become hesitant to innovate, particularly in agriculture, for he cannot take the chance of failure. These characteristics behavioral responses are not inherent in the in-formal sector, they are adaptive responses to low income.

In this context it becomes imperative for the Islamic Banks in general and Arab world in particular to work in the non-corporate sector. There are number of approaches which have been tried elsewhere can be adopted or adapted by Islamic Banks. Let us say a few words about Group Lending Schemes and Rotating saving and credit Associations.
Group Lending Schemes:

Group lending is one of the most popular form of informal finance. The funds for group leading schemes can come from a commercial bank, a government development Bank or private institutions. The role of the group varies. The idea is that by joining together, small borrowers can reduce the costs of borrowing and improve their access to credit. The two most common means of providing group accountability are (a) joint and several liability and (b) limited liability.

Experience indicates that family empowerment credit program or group lending schemes, under Non-formal Banking of Social Investment Bank Ltd. in Bangladesh works well with groups that are homogeneous and jointly liable for defaults. The practice of denying credit to all group members in case of default is found to be most effective and least costly way of enforcing joint liability. Group lending arrangements without collateral are less subject to the dangers of portfolio concentration because Bank is diversifying lending by serving a varied clientele in different areas under its family empowerment credit arrangement. Bank also is ensuring joint liability of wife and husband in case of lending to family or groups of families. This will humanize family and discourage internal immigration. Any attempt to decompose family through various credit and financing schemes in its ultimate analysis bound to generate the forces of disintegration of families, internal migration, child delinquency, social alienation and social conflict. Any credit program which does not manage its socio-economic consequences can not alleviate poverty. Besides, Bank has already introduced Rotating Family Savings and Credit Net and Group installment credit Scheme for any group of individual.

Rotating savings and credit Associations:

Rotating savings and credit associations (ROSCAs) are a popular form of informal finance. They have various aliases: tanda in Mexico, pasanaku in Bolivia, san in the Dominican republic, syndicate in Belize, gamaiyah in Egypt, isusu in Nigeria, susu in Ghana, tontine in Niger, hagad in Somalia, zitique in Mozambique, arisan in Indonesia, paluwagan in the Philippine, chit in India and Sri Lanka, pia huey in Thailand, hui in China, kye in Korea, and ko in Japan(8) .

ROSCAs intermediate in the most basic way. A small number of individuals, typically six to forty, form a group and select a leader who periodically collects a given amount ( a share) from each member. The money collected (the fund ) is then given in rotation to each member of the group. In some countries, such as India and Cameroon, ROSCAs have evolved into formal banks. Three types of ROSCAs are found in many countries. In common ROSCAs, the leader receives no special consideration (other than possibly getting the first fund). Commission ROSCAs pay their leaders, who in return may assume liability for defaults. Promotional ROSCAs are used by merchants to sell goods, especially consumer durable.

Loans are interest free in most common and promotional ROSCAs. The popularity of ROSCAs among low-and middle-income groups shows that people like to save even under trying circumstances. The popularity of such arrangements show the potential for pooling individual savings among small farmers or micro entrepreneurs. In England and elsewhere building societies-which later became an important part of the formal financial system- often began as ROSCAs.

From the preceding discussion it is evident Islamic Banks in Arab world should chart a clear course and mode of intervention in the non-corporate sector by financing mainly Family Empowerment Credit Program through group Lending Scheme or organizing ROSCA type credit management in combination with social fellowship program in exchange of small social assignments involving students as well as mobilizing local voluntary participation or culturally liked Social Innovation.

Islamic Banks strategy should focus on supporting policy for alleviation of poverty and promotion of income generating activities for the poor in collaboration of micro-enterprises and small scale enterprises targeted at the poor family in the urban as well as the rural areas. It would provide the graduation of selected beneficiaries who have been regular clients of micro-credit schemes to upscale their business and provide support to clients interested in starting new enterprises having benefited from ongoing skill development and training programs. It may be mentioned here that Islamic Development Bank, wanted to start a Micro Credit Program on a pilot basis. This is indeed a right move in right direction.

5. Discovering Islamic voluntary sector Banking

The real glory of the Islamic voluntary sector lies in the fact that it has a rich legacy, culture and history, it is indeed an area where thousand flowers can bloom, given the revolution in information technology, it is the right time for globalisation of Islamic voluntary sectors activities. In this process Islamic Bank in the Arab world can play a very vital role in re-activating and institutionalizing the role of Islamic Socio-Economic institutions and various voluntary and obligatory tools of redistribution of income through innovative financial instruments and management of fund such as Waqf properties development bond, Cash-Waqf Certificate, Zakat Certificate, Hajj Saving Certificate, Trust Fund and so on.

Despite the fact that many of the activities of the Islamic voluntary sector which may include the institutions such as Zakat, Awqaf, Mosque, Hajj, Islamic non-profit charitable trusts and foundations do not come under the conventional calculation of GNP, these institutional activities need to be reviewed and analyzed in the light the challenge and change, Muslim societies are facing today. In the wake of great transformation in East-West relationship resulting from (a) emergence of formidable economic block in Europe, (b) collapse of communism, (c) rise of Muslim republics in the Central Asia, (d) the widening the economic gap between North and South, and (e) severe economic backwardness, under-development and poverty in the Islamic countries of the Organization of Islamic Conference (OIC), despite their potentialities and vast resources, and (f) rise of ethnic militancy and growing threat to Muslim minorities in non-Muslim countries, there is, perhaps an urgent need to restore these institutions to their true spirit and utilize them fully for promoting the moral, spiritual, social and economic welfare of Muslim societies, nay, the mankind as a whole. The crucial question before us as to how to operationalize and institutionalize these activities of the voluntary sector so that they can be integrated into the mainstream of economic activity, resource mobilization, savings and investments and capital markets.

Viewed from this perspective, all Islamic Banks in Arab world in particular should establish Zakah Fund and actively explore the possibility of utilization of Zakah Fund in lawful ‘Mudarabah Projects’ as a financial partner. Zakah revenue redistributes wealth into consumption flows for the poor, raises their productivity, reallocates ex-ante saving by checking the tendency to hoard idle cash, and stimulates production through inter-sectoral allocation of resources. However, it is felt that Zakah has a tremendous humane potential and can generate the forces of altruistic behavior in a Muslim society. The need to educate the people to accept the obligatory income sharing voluntarily is critical need of our time.

Similarly, Hajj affairs should be viewed as one of the significant socio-economic institutions of Islam, an area where Islamic Banks can work by managing Hajj affairs. In this context attempts will be made to analyze the activities of the Pilgrims Management and Fund Board of Malaysia, more popularly known as “Tabung Haji”, identify the factors responsible for its success, and draw the lessons of experience of its operations for the members of the Organization of Islamic Conference (OIC) and its possible policy implications.

Furthermore, from a historical perspective, the institution of Waqf has, among others, played a significant role in furthering the cause of Islamic education, health and research through establishment of Schools, Hospitals, Madrasas, Mosques and public libraries.

In the context of 21st Century, Islamic Banks in Arab world in particular must work for Securitization of Islamic Voluntary Sector. In this connection, it is to be noted that in the voluntary sector. The following financial instruments with different sets of rules in conformity with Shariah may be explored:

a) Waqf Properties Development Bond (specific and general)
b) Cash Waqf Deposit Certificate (specific and general)
c) Family Waqf Certificate
d) Mosque Properties Development Bond (specific and general)
e) Mosque Community Share
f) Qard-e-Hasana Certificate (specific and general)
g) Zakat/Ushar Payment Certificate
h) Hajj Saving Certificate

The value of all the Bonds and Qurd-e-Hasana Certificate need to be are guaranteed by the Bank against surrender of the instrument on maturity.

Cash Waqf Certificate Scheme

As a part of extending three Sector Model Banking services towards the achievement of corporate objectives of Social Investment Bank Ltd. (SIBL) in Bangladesh, SIBL has already introduced Cash Waqf Certificate Scheme in the process of Organizing Voluntary Sector Capital Market operation for the first time in history of Banking. It intended to empower the family heritage of the rich as well for the benefit of the society at large.

As we know, Waqf generally means the permanent dedication of any property by a Muslim for any purpose recognized by Islamic law as religious, pious or charitable. Generally, Waqf is known to be related to endowment of any property of permanent nature. The use of “Cash Waqf” as recognized in Islam can be traced during the Ottoman era. Turkey has one of the longest history of Awaqf administration. Egypt which has a long history of Awaqf Management also allowed Bank credit as a subject of Waqf endowment. It is felt that the Cash Waqf can be used as a financial instrument, a new product line in Banking sector.

The introduction of Cash Waqf Certificate Scheme is intended to monetize Islamic Voluntary Sector for the first time in history for mobilization and capitalization of social savings. It would perhaps, be the most effective and perpetual mode of deposit mobilization and use of its profit for perpetual social investment and benefits in the Arab world as well.

The guidelines governing the operation of the Cash Waqf Certificate as adopted by Social Investment Bank Ltd. in Bangladesh are as follows:

1. Cash waqfs shall be accepted as endowment in conformity with Shariah. Bank will manage the waqf on behalf of the waquif.
2. Waqfs are done in perpetuity and the Account shall be opened in the Title given by the waquif.
3. Waquif will have the liberty to choose the purpose (s) to be served either from the list of 32 purposes identified by SIBL as given below or any other purpose(s) permitted by shariah.

* Family Rehabilitation : 1. Improving the conditions of absolutely poor living below the poverty line
2. Rehabilitating physically handicapped, and disadvantaged
3. Rehabilitating beggars.
4. Rehabilitation of destitute women
5. Upliftment of urban slum dewellers
* Education & Culture : 6. Education of orphans i.e. supplying books free of cost
7. Expansion and development of appropriate education for skill development
8. Informal education facilities of children at home (i.e. mother’s educational program, children literature)
9. Physical education and sports facilities
10. Supporting local culture and heritage and art promotion
11. Conducting Dawah activities
12. Supporting education of deserving students in the form of scholarship
13. Supporting vocational education in general
14. Supporting education of a specific area
15. Financing specific Madrasha/School/Colleges of a particular area.
16. Educating deserving descendants
17. Supporting any projects in the area of education, research, religious and Social services in the memory of father, mother and any descendants.
18. Establishing educational chair.
* Health & Sanitation : 19. Village health care and sanitation
20. Supplying pure drinking water (to households, schools, mosques, slums, etc.)
21. Establishing hospitals, clinics, health care programs specially for the poor.
22. Health research grant, Research in particular disease.
* Social utility service:
23. Settling disputes (e.g. Village litigation)
24. Providing legal aid to deserving women to establish their lawful rights.
25. Assist in arranging dowryless marriages to poor girls.
26. Maintenance of public roads and tree plantation in the village
27. Providing assistance to peace loving non-Muslims and solving their problems
28. Creating social awareness to prohibit gambling and other social vices such as theft and other anti-social activities.
29. Construction, installation and development of public utility services.
30. Maintenance of a specific mosque(s) with an income generating project(s)
31. Maintenance of a specific graveyard with an income generating project(s)
32. Maintenance of a specific Eidga(s) with an income generating project(s)

4. Cash waqf amount will earn profit at the highest rate offered by the Bank from time to time.

5. The waqf amount will remain intact and only the profit amount will be spent for the purpose(s) specified by the waquif. Unspent profit amount will automatically be added to waqf amount and earn profit to grow over the time.

6. Waquif may also instruct the Bank to spend the entire profit amount for the purpose specified by him/ her.

7. Waqif will have the opportunity to create cash waqf at a time. Otherwise he/she will declare the amount he/she intends to build up and will start with a minimum deposit of Tk. 1000/= (one thousand) only. The subsequent deposits shall also be made in thousand or in multiple of thousand.

8. Waquif shall also have the right to give standing instruction to the bank for regular realization of cash waqf at a rate specified by him/her from any other a/c maintained with SIBL.

9. Cash waqf shall be accepted in specified endowment Receipt voucher and a certificate for the entire amount shall be issued as and when the declared amount is built.

10. The Principles and rules of Cash Waqf Account are subject to amendment and to be reviewed from time to time.

6. Agenda for Action in the 21st Century:


It becomes abundantly clear that a considerable in house preparation by Islamic Banks in Arab world is needed in developing distinct Islamic Corporate, non corporate and voluntary sector financing. In the case of corporate sector, the key thrust lies in greater participation of the local people both in terms of ownership and beneficiaries of Bank's investment, greater network of mutual obligations among the Islamic Banks, greater transparency of Social, ethical and moral ingredients of various Islamic modes of financing. In the case, non-corporate sector, the key thrust lies in conscious planning and developing credit program that reinforces family values and stimulates civil society. In the Islamic Voluntary Sector, the key thrust lies in developing social capital market for mobilizing and capitalization of perpetual social savings and investment. The composite thrust of these three sectors' financing lies in comprehensive participatory Banking with human face beyond market for the benefit of Muslims and non-Muslims. Seen from these perspectives, the following few proposals are put forward for appropriate intervention by Islamic Banks in Arab world in particular.


I. Launching Family Empowerment Micro Credit Programs on a voluntary basis.

Credit transfer powers. Each Islamic Bank should voluntarily make its own allocation of this credit program to serve the poor at the gross-root level to be Coordinated by a Islamic Bank volunteer or by regional rotation of Islamic Banks.




II. Global mobilization and creation of fund through sale of Cash Waqf Certificate to support education, health & research ;

Throughout the history of Islam, Waqf played a significant role in promoting Education, Health, Arts and Architecture and Research. The 21st century must rediscover Islamic Philanthropy. Perhaps, Turkey which has one of the longest history of Awaqaf administration reached its peak during the Ottoman era, where Awaqf properties were estimated to have three quarters of the whole arable land in 1925. In 1983, a Ministry of Awaqaf was re-established after its abolition in 1924. One half (1/2) of the cultivable land in Algeria in mid nineteenth century was dedicated to Waqf. Similarly, in Tunis, one third (1/3) (1883), in Turkish empire (3/4) (1928) in Egypt(1/7)(1935), in Iran about 15% (1930) of the whole arable land were endowed to Waqf The accumulation of such extensive possession of land under Waqf had prompted many countries to introduce many reforms. In India, the statutory control of Waqf started with the passing of the Mausalman Waqf Act of 1923 during the pre-partition days. During the post-partition era, several acts were in acted and ordinance promulgated in Pakistan which was adopted in Bangladesh also.

Seen from these perspectives, global mobilization and sale of Cash Waqf Certificate should not be difficult, given the rich Islamic Legacy, culture and history of endowments. Currently, American is perhaps the most generous nation in the world. For example, American gave nearly US $ 2 billion to International Cause in 1997. Last year according to figures by Giving USA , Americans donated $143 billion to non-profit organizations. Just over three quarters of this came from living individuals ( $109 billion); the rest from foundations($ 13 billion), bequests ($ 13 billion) and companies ($ 8 billion). The non-profit part of the economy accounts for 8% of GDP, a figure that has more that doubled since 1960; and it employs nearly 10% of the American work force-more than federal and state government combined(10). Perhaps, given its legacy Muslim Philanthropy in the Arab Islamic Bank in co-operation of other Islamic Banks can match the American philanthropy. What is needed rediscover Islamic socio-economic values and revive Islamic Institutions. Islamic Banks must explore this opportunity for mobilizing this social capital.

III. Globalization of Islamic Voluntary Sector activities with special reference to Zakat, Hajj, Waqf etc:

The creation of Islamic Soldiery Fund and its Waqf under the umbrella of OIC is the right move. There is a urgent need to re-active its activities. Instead of extending charity out by the fund, the involvement of Islamic Banks in one form or other appears to be needed in planning and implementing social investment programs.

IV Establishing Trading House of Islamic Ummah / corporation & Islamic Dinar:

It appears to be in order to suggest that under the umbrella of Islamic Chambers of Commerce, Trading House of Islamic Ummah in Co-operation of the Kingdom of Saudi Arabia may be established under which each member country or Muslim community be given a permanent space to exhibit and sale their products. At the end of pilgrimage, an arrangement can be made for the optional visit by all pilgrims and other Muslims who come to "Umrah" during the whole year. This Trading House of Islamic Ummah can serve as one of the important building blocks of eventual formation of Islamic Common Market. This House of Islamic Ummah once established can provide scope for exchange of information relating to investment in co-financing and joint venture projects among Islamic Banks. These can eventually lead to the formation of Islamic Multi-national Corporation or Islamic Ummah Co-operation in the various fields such as petro-chemicals, Textile, leather, electronics, etc. Since exchange of different currencies into local currency and vice-versa are taking place throughout the Hajj and Umrah session of the year, attempts may be made for further operationalisation of Islamic Dinar. Islamic Bank in Arab world should play its role in this regard.

V. Establishment of World Social Bank in the private sector :

There appears to be an urgent need to establish World Social Bank in the private sector for global mobilization of Social savings and investments that re-inforce basic family and Societal values and stimulate civic responsibilities of civil society at the grass-root level. As indicated earlier that establishment of Jeddah based Islamic Development Bank (IDB) of 53 member countries in the public sector is indeed important event of our time. Since IDB has to work through governments of the member countries, it has its great limitations. Its potentials are great, but its impact is marginal. The proposed World Social Bank of Islamic Ummah must address the issues involving globalization of poverty, pervasive corruption in some Muslim Countries. Private sector of Islamic Ummah should forward to create fund for establishment of this Bank. Arab Islamic Banks can play a vital role in this direction.

7. Conclusion:

Taken all in all, it can be safely said that Islamic Bank in Arab world must play a more aggressive role. It has enormous responsibility in mobilizing, allocating of resources which contribute to participatory economics of peace, the burden of which material civilization can not sustain. The proposed agenda for action is only indicative. They are by no means exhaustive.

The key thrust of Islamic Banks should be directed towards development of an authentic participatory economy beyond market economics that empowers the family of both rich and poor in the context of their social settings. The understanding of the real people and putting real masses of people into work in a socially and culturally acceptable environment is the critical need of our time. This significant element of "Participatory Economy" calls for an urgent attention. This is where operations of Islamic Banks in Arab world would assume their special significance.

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RESUME

Prof. Dr. M. A. Mannan*

M. A. Econ. (R. U.)’60, M. A. Econ. (Michigan), Ph. D. Econ. (Mich. U.S.A.)’73 Certificate in Dev. USA.

Over 41 years’ experience of money, banking, finance, economic planning, civil administration, teaching, and research in several universities and countries around the world including Australia, Bangladesh, Pakistan, Papua New Guinea, Saudi Arabia, U.K. and the USA; a pioneer in the field of Islamic Economics, Banking and Finance; Research Professor, King Abdul Aziz University, Jeddah, Saudi Arabia, (1978-84); Commissioned as Consultant, Islamic Development Bank (1978) and Asian Development Bank, Consultant in the areas of Development, Monetary Economics, Public and Islamic Finance; Visiting Professor/Scholar, Georgetown University, USA in early 80s’. Served about 13 years at the highest professional position of Senior Economist/Chief Economist in Islamic Development Bank (IDB), Jeddah, Saudi Arabia (1984-96). Founder Chairman: a) Social Investment Bank Ltd. (SIBL); Targeting Poverty, approved in 1994, b) Bangladesh Social Peace Foundation (BSPF) (A Non-profit Trust) and c) Holistic Family Health Clinic (HFHC) (A Non-profit Organization), Dhaka, Bangladesh; Started career as University College Professor and as a Member of the then East Pakistan Civil Service and Central Superior Service of Ex-Pakistan in 1963-64; served as Asst. Financial advisor and Asst. Chief of Planing Commission of Ex-Pakistan in early’60s.

His major works in Economics, Islamic Economics, Banking and Finance include: (i) An Introduction to Applied Economics, (Dhaka -1963), (ii) Economic Problems and Planning in Pakistan, (Lahore:1968), (iii)Academic award winning book: Islamic Economics-Theory and Practice (Pakistan - 1970) (revised Edition UK 1986): “Internationally recognized” first text book on the subject. Reprinted over 20 times, translated in dozen of foreign languages, including Arabic, English, Bengali, Turkish, Bahasa Malaysia, Bahasa Indonesia, (iv) The Making of Islamic Economic Society (Cairo-1984), (v) The Frontiers of Islamic Economics, ( India -1984), (vi)Economic Development and Social Peace in Islam, (UK-1989), (vii) Understanding Islamic Finance (IDB, Jeddah-1993) (viii) Structural Adjustments and Islamic Voluntary sector with special reference to Bangladesh (IDB, Jeddah-1995), (ix) The impact of single European Market on OIC Member countries (ed), (IDB, Jeddah-1996), plus numerous articles/papers and reports mainly on Economic development, Economics of Education and underdeveloped countries, General and Islamic economics, Money Banking and Finance.

Placed as one of TOP FIVE ISLAMIC ECONOMISTS IN THE MUSLIM WORLD published in a book entitled, Contemporary Islamic Economic Thought, Malaysia (1995). Enlisted in ‘WHO’S WHO IN THE WORLD’ (since 8th edition: 1978-88, Macmillan USA) as economist, educator, consultant, Islamic economist. Also included in ‘FIVE THOUSAND PERSONALITIES IN THE WORLD’ 2nd edition 1990, ABI, USA and Men of Achievement, Cambridge, UK (1989). Traveled over 50 Countries.

*Dr. Mannan, born in 1938, a Bangladesh national returned to his country after living 33 years abroad taking pre-
mature retirement from Islamic Development Bank, in 1996: married with two children:
Wife, Nargis Mannan, MA, International Award winning Copper Artist and Director, Social Investment Bank
Ltd. Daughter, Dr. Reshmi Mannan, BSc.(LSE), Msc (Oxon) MS (NY), Ph.d. (USA): Son, Dr. Ghalib Mannan,
M.B.Bch.(UK), MD (USA) Fellow (USA):

Mailing Address: “Megh Mallar”, 97 Suhrawardy Avenue (Biswa Road), Baridhara, Dhaka- 1212. Tel: (880-2) 8811241 (Res.), Tel & Fax: (880-2) 8821654(Res), E-mail: cmsibl@bdonline.com (Res).

THE NEED TO REINFORCE THE CULTURAL MISSION OF A UNIVERSITY

VALUES AND ETHICS - FUNDAMENTALS OF THE CULTURAL MISSION OF THE UNIVERSITY

Sharifah Hapsah Syed Hasan Shahabudin
Vice Chancellor
Universiti Kebangsaan Malaysia (UKM)
ncukm@ukm.my

THE NEED TO REINFORCE THE CULTURAL MISSION OF A UNIVERSITY

University as a vehicle for national competitiveness in the K-economy
Since the espousal of the free market ideology of the 1980s and increasing globalization, Malaysia, just as in other economies of the world, recognize two critical roles of higher education. The first is the importance of universities in producing knowledge, innovation and technology as well as skilled workers for wealth creation and comparative advantage for the national competitiveness in the k-economy international marketplace. Secondly, higher education is also seen as a revenue generator to meet the high demand for higher education by people from all corners of the world. These facts are recognized in the Higher Education Strategic Plan which was launched on 27 August 2007.

Consequently many policies, including fiscal policies and measures that were adopted by many western countries were increasingly introduced in Malaysia. These included the corporatisation of public universities and privatization of higher education directed at making Malaysia a regional hub for education that is attractive to both foreign and local students.

With this central understanding about the role of education and technology in successful economic growth, universities are being re-structured. Contained in the higher education strategic plan are notions of technical ideals of excellence guided by mission statements, strategic plans, performance output and quality outcomes. Universities are also expected to emulate private sector management where governance is based on return of rate of investment, transparency and accountability. Thus universities are expected to give priority to internationalisation, industry relations, commercialization and use of information and communication technology as they seek funding for research and development and international sites and students for teaching and research.

In such a system performance indicators may be heavily inclined to tangible outcomes such as number of foreign students enrolled, patents filed and research products that are commercialized. Higher education may largely be perceived as an economic subsystem for producing workers or retraining them through life long learning for the k-economy labour market and for generating, transmitting and applying knowledge for wealth creation.

Marginalisation of ethics, values and culture

Consequently in a purely market driven economy, the system of education which emphasizes ethics and values will inadvertently be sidelined and there may be marginalization of the intangibles such as beliefs, spirituality, happiness, tolerance, mutual respect, sharing, caring, loving, et cetera. Possible consequences are a lack of social sensitivity and communal engagement, with a lackadaisical attitude to social responsibility and community problems.

This is unfortunate because universities must continue to push the frontiers of understanding by producing knowledge for its enlightenment and empowering effects rather than just for its utilitarian role in the culture of enterprise. Whilst knowledge is an essential defining element of scientific and material progress, it is also critical for the preservation of values such as responsibility, right and wrong, good and evil, traditions, customs and culture which collectively give us our identity or national self knowledge.


THE CULTURAL MISSION OF A UNIVERSITIY

A third mission of the university is often said to be services to the community where the university is expected to be an active agent and partner in social change. Under the rubric of culture the dual tasks of teaching and research are reflected in the production and inculcation of national self knowledge or identity which includes the idea of a nation and the education of national subjects with developed intellect, imbibed with values for responsible and productive citizenry.

The university steers research and curricula to meet emerging societal needs, provide innovative ideas and practices for the solution of local problems, improve the social importance of knowledge throughout the community and meet the challenges of multicultural societies and globalization.

The university which focuses on culture asks the what, how and why of teaching and research. It does not merely monitor and maintain the system for excellence.
Engaging in social change induces a cultural change in academia and society and allows independent thinking and opinion making about societal issues such as hunger, health, poverty, social unbalances, climate change, digital divide and conflicts. The university serves as critic and conscience of society. It keeps watch over the spiritual life of the people, reconciles ethnic traditions with state rationality and legitimates them by founding a set of practices, a cultural image, a discourse or an institution.

This is also part of the social contract of universities with direct effects on transparency and accountability as public institutions. It is a way of providing evidence of value for the financing spent on universities.


IMPORTANCE OF NATIONAL SELF KNOWLEDGE IN MALAYSIA

In a country like Malaysia, it is critically pressing for a university to be an active agent and partner in social change. The notion of national self knowledge or culture is important as a unifying idea in multi ethnic and multi religious Malaysia. Such ideas drive the fundamental vales and ethics of a university.

The fascinating mix of people with cultures from several great civilizations of the world is a result of its geographical location in SEA, a meeting point of civilizations from the east and west. The Straits of Malacca has always been an important route for traders from the east and west. Malaysia also has a colonial legacy which has brought Portuguese, Dutch and British influences to its shores. These cultures are now interwoven with its unique Malay heritage.

Malaysia is a vibrant democracy with a constitutional monarchy. It has a population of 26 million consisting of the majority Malays and other indigenous people including from Sabah and Sarawak who are called Bumiputra, Chinese and Indians. The ethnic composition is also reflected in the many languages spoken in the country, not including the dialects. Islam is the official religion and the practice of other religions and beliefs is constitutionally guaranteed. It is common to see temples, mosques and churches located in close proximity.

Social contract

Malaysia has always been perceived by many developed and developing countries as a successful story of peaceful ethnic relations, underpinned by an equally successful balancing of economic development and political stability that has now lasted for 50 years. A key historical factor was the willingness of the majority Malay polity to accommodate and confer a common citizenship to a sizeable non indigenous population at the time of independence 50 years ago. Citizenship guaranteed their economic, political and social rights. An example is the right to education in the mother tongue. In turn the non indigenous people recognize the special position of the Bumiputra and accepted the symbols of Malay polity: Malay as the national and official language, Islam as the official religion and the Malay rulers as the constitutional heads of their respective states and the Federation. This is often referred to as the social contract.

The path to social stability and cohesion is not always smooth. Overt racial tensions and riots in 1969 have brought home the point that racial integration and unity are the fundamentals to national progress. Now policies, strategies and actions are carefully crafted to ensure economic growth with equity, to restructure society to eradicate poverty and to forge a common identity from its disparate origins. The country takes pride in valuing multiculturalism as its strength and for moving forward in an increasingly globalised world.

Policies and values

The delicate tasks of balancing different interests and needs and for forging a national identity are clearly enshrined and articulated in several policy documents. An example is the National Vision 2020 which outlines nine challenges to a fully developed nation status by 2020, covering economic, social, spiritual, psychological and technological aspects. The fourth challenge in Vision 2020 is “the challenge of establishing a fully moral and ethical society whose citizens are strong in religious and spiritual values and imbued with the highest of ethical standards” .

Another code for instilling national identity is the Rukunegara or National Charter which contains five tenets: belief in God, loyalty to King and country, sanctity of the Constitution, upholding the rule of Law and guided by values and ethics. Islam Hadhari is civilisational Islam which outlines the ten principles for an integrated and well-balanced national agenda of development which include shared religious values, rights as enshrined in the Malaysian constitution and environmental protection.

The Five-Year Malaysia Development Plans and national policies such as on Education, Unity and social cohesion guide the various strategies and actions. Underpinning all the policy statements are values such as loyalty, morally upright behaviour, pursuit of knowledge and striving for excellence, justice, integrity, sincerity, mutual respect, trustworthiness and respect of human dignity.

Ethical Practices

The country tries to match policies with ethical practices in what may be called as the Malaysian way or the Malaysian mould. In governance, transparency and accountability are maintained by the separation of powers among the Legislature, Judiciary and Executive. The Legislature consists of an elected People’s House and an appointed Senate. A general election is held every five years.

Politically, the same party has ruled the country for the last fifty years. Even though there is a thriving opposition, the ruling party called the Barisan Nasional (National Front) has convinced the electorate that its coalition of ethnic based parties is the winning formula for conflict resolution and political collaboration and negotiation for peace and development. A vigorous civil society exists as the social watchdog to uphold integrity and societal values.

In reinforcing the values, Malaysians take great joy in celebrating their diversity. The practice of “open house” to celebrate the various festivals such as the Id which comes at the end of Ramadan or Muslim fasting month, Chinese New Year, Deepavali or Hindu festival of lights, Wesak or birthday of Buddha, Vasakhi or New Year of the Sikhs and Christmas can only found in Malaysia. Those celebrating the joyous occasions open their doors to welcome others of different faiths and cultures as well to partake in the festivities. These festivities are also celebrated on a national scale.

Commonalities in values

Although there are obvious differences in the belief systems, in particular with regard to the nature of God, the believers in multi ethnic Malaysia by and large share the same ethical principles. Malaysians share these commonalities more so than their differences in order for them to live together and to work effectively as a team. For example, in Islam, the Prophet Muhammad (Peace Be Upon Him) said “No one of you is a believer until he loves for his brother what he loves for himself” (Hadith as narrated by Bukhari and Muslim). Christians believe that “All things whatsoever ye would that men should do to you do ye even so to them” (Matthew, 7:12). Buddhists say “Hurt not others with that which pains yourself” (Udanavarga, 5:18). In Confucianism “Never do to others what you would not like them to do to you”(The Analects Book 15:23), and in Hinduism “Good people proceed while considering that what is best for others is best for themselves” (Hitopadesa).


THE CULTURAL MISSION OF UNIVERSITI KEBANGSAAN MALAYSIA (UKM)

Universiti Kebangsaan Malaysia or UKM derives its values and ethics from the same national aspirations. It has a moral obligation to produce, protect and inculcate the idea of national self knowledge or culture and values that the country espouses. “Kebangsaan” means “national” in the Malay language or Bahasa Malaysia. As the national university of Malaysia, UKM proudly aligns itself to the national philosophy, mission and goals that determine the future of the country. UKM also has a unique history. It was born out of the nationalist struggle to have a university that uses Bahasa Malaysia at the pinnacle of the national education system and which is fundamental to national identity. UKM has a moral obligation to uphold this legacy and mission even though English has re-emerged as the major language for the teaching of Mathematics and Science in Malaysia.

CHALLENGES AHEAD

As Malaysia moves into its second half century, it is very much aware that many issues need to be addressed and strengthened. Most of these revolve around the idea of national identity, common values, inter ethnic understanding and racial harmony. All these could threaten the plusses gained and thwart further economic progress if not managed well. This is especially so when globalization actually erodes sovereignty and gives rise to the decline of the nation state. It is also recognized that new centers of power may arise and nations such as Malaysia should try to influence the shape of things to come by playing a more proactive role in regional and international affairs . We need to go beyond pragmatic interethnic compromises and develop a more profound commitment to values such as justice, integrity and humanitarianism.


CULTURAL MISSION OF UKM

A university cannot do everything. But it can, as a national university, focus on the what, how and why of teaching and research to inculcate the idea of a nation and the education of national subjects imbibed with values and ethics for responsible and productive citizenry.

UKM also seeks greater global acceptance and stronger brand value by combining the emotional connection to its history with the foundation of academic excellence which is internationally benchmarked. Its brand essence is nurturing possibilities and inspiring futures is the rallying call to meet the challenges of multicultural societies and globalization.

Examples of initiatives to forge values and a national self knowledge at UKM

Promoting the national language in its intellectual tradition.

The idea of a nation is strongly attached to a national language, the means for citizens to communicate and understand each other. As the university established to be at the pinnacle of the national education system, UKM has given exemplary service in developing the Malay language as the language of knowledge, particularly in science. Through its contribution the scientific terminology in the Malay language has expanded and students who have graduated have no problems in completing studies at the advanced levels in foreign universities.

In 2001 the government reverted to English as the medium of instruction for the teaching of Mathematics and Science based courses. This policy change is based on the fact that the repository of scientific knowledge and technology which is growing and being communicated at phenomenal speed is mainly in the English language. To stay ahead one cannot depend on translation anymore.

The implications for UKM was large because abandoning the Malay language was totally unacceptable, a situation described in the Malay saying as “to swallow is to kill the father, to vomit is to kill the mother”. The Malay language is the reason for UKM’s establishment. It is a symbol and vehicle for unity.

As a national university UKM has to be creative in preserving the symbol of unity and yet not be oblivious to the importance of English. Today UKM adheres to the English language policy for the science and mathematics based courses but requires all students to write the final academic paper in Malay. To give greater space for the use and mastery of English as a global language, UKM is turning residential colleges into English speaking zones.

Celebrating cultural diversity
Being a microcosm of society at large and having a student population that closely reflects the ethnic composition of the country, UKM seizes the opportunity to further the goals of national unity and regional integration (with Sabah and Sarawak). Ethnic based arts and cultural activities and festivities are encouraged to foster and promote inter ethnic understanding. The only conditions imposed are that the organising committees and participation in the celebration of cultural diversity must also be multi ethnic. The understanding is that UKM students should be the living demonstration and model of inter ethnic understanding and unity that would guarantee a better future for the nation.

In addition UKM has established several research institutes to help clarify issues facing the nation and to offer creative solutions. These include the:

• Institute of Malaysian and International Studies (IKMAS) which focuses on globalization issues
• Institute of the Malay World and Civilisation (ATMA) which has an extensive collection of works about the Malay world and internationalises our identity and heritage through ATMA portal
• Institute Islam Hadhari to study the development model proposed under this concept
• Institute of Ethnic Studies, for greater understanding of the social dynamics of ethnic relations in Malaysia, and to engage in community-based advocacy for long-term sustainable and harmonious ethnic relations.
• conducting comparative studies with other ethnically-plural societies from all over the world to learn more of the strengths and weakness of our system.
• Institute of Occidental Studies which studies the Occidents through Malaysian eyes
• Institute of West Asian Studies which focuses on systematic understanding of a region which is becoming very important for Malaysia.

Community engagement

Community engagement is essential for social change. By directly putting the University’s expertise/resources in participatory, bottom-up, people-centered development, UKM has managed to enhance the quality, social relevance and effectiveness of its educational and research programmes, through links to the ‘real’ society/world

In teaching and learning the community becomes the living classroom for students to learn in a holistic manner and where their volunteerism will result in a wholesome individual and responsible citizenry. In one of the worst floods in a southern state this year, student volunteers helped in the rehabilitation efforts. Community engagement is an excellent way to achieve the lerning outcomes expected from the UKM graduate. Apart from the traditional knowledge and practical skills aspects, students are exposed to teaching and learning experiences and are assessed to ensure that they have achieved competences in seven other domains. These include social responsibility, professionalism, values and attitudes, communication and team skills, critical thinking and problem solving skills and life long learning skills.

In research, partnership with the community results in better policy formulation and programmes for community development as well as application of scientific inventions in areas such as poverty eradication, health promotion, environmental conservation, and disease prevention. An example is the solar energy research where stand alone solar panels are tested in remote villages which can make a difference to the quality of life of the Orang Asli or indigenous people by providing power for productive activities and communication.

CONCLUSION

The cultural mission of a university is pervasive in all its functions of teaching, research and community engagement. It is driven by values, ethical principles and convictions that are dear to us, which are deep in our hearts, which appeal to us, and what matter in our lives. It is something that we will fight to preserve. They motivate us as individuals and collectively as an institution to shape our decision making and actions in a balanced and moral manner.

However values alone are inconsequential. It has to be translated into acts such as caring, concern, mutual respect, collegiality, consultation, inclusion and representation, equity and fairness, gratitude (mengenang budi), integrity, respect for elders (kung fu tze), refined and civilized manners (sopan-santun), professionalism, and priority for quality.

Values don’t come automatically. They must be cultivated and nurtured through leadership, governance and personal experiences that foster shared values, shared mission and a shared vision even if there is a dichotomy of values. When staff, students and the community understand the differences, they will negotiate to resolve conflicts together for a common goal and to support what they help create.

The university has also got to establish appropriate structures (e.g. office for university-community partnership) and policies to support and ensure that values are preserved and transmitted in ethical practices. At the end of the day even when the university can show astounding economic excellence, what matters most is how a university is judged by its moral standards.

3rd International Conference on Quantitative Methods Used in Economics and Business, Universitas Malahayati, Bandarlampung, Indonesia

June 16-18,2010.

Introduction
In recent years a great deal of effort has been invested in documenting, measuring and valuing environmental trends in developing Asian countries. The data indicated that growth rates of energy demand, industrial emissions, and the depletion and degradation of many forms of environmental services and natural resources have matched or even exceeded rates of economic growth. Even in the regions and countries with the brightest records, it seems that high rates of growth and poverty alleviation have apparently come at considerable environmental cost.

Although some economic theories predict that the intensity of environmental damage associated with growth diminishes at higher levels of per capita income, this prediction has not so far received robust empirical support in Asia, especially where natural resource depletion is concerned.

Economics and Quantitative Methods still predominantly exist in the international relations of any country involved. The needs to effectively manage the economy with the quantitative methods locally and nationally are high. An understanding of the behavior of economics is needed to predict it and then to guide action to ameliorate it.

The conference’s topic.
The conference’s topic will include the field of Economics such as: macroeconomics, microeconomics, managerial economics, business practices, accountancy, taxation, human resource management, consumer behavior, development studies, population studies, environmental economics, etc.; and also the Quantitative Methods such as: statistics, mathematics, operation research, research methods, and computer programming used in economics and business.

Keynote Speakers

• Prof. Dr. Karan P. Singh, University of North Texas, Health Science Center at Fort Worth, Texas, USA.

• Prof. Dr. Gregory A. Ivakhnenko, University of Ukraine, Ukraine

• Prof. Dr. Bustanul Arifin, Universitas Lampung, Indonesia.

• Prof. Dr. Mat Nasir Samsudin, Universiti Putra Malaysia.


Invited Speakers

• Dr. Mustofa Usman, Universitas Lampung and Universitas Malahayati, Indonesia

• Prof. Dr. Widodo, Universitas Gajah Mada, Yogyakarta, Indonesia.

• Dr. Iing Lukman, Universitas Malahayati, Indonesia

• Dr. Faiz Elfaki, International Islamic University of Malaysia, Malaysia.

• Prof. Dr. Khairil Anwar Notodiputro, Instiut Pertanian Bogor.

• Dr. Bevina D. Handari, Universitas Indonesia, Indonesia

• Prof. Dr. Nur Iriawan, Institut Teknologi sepuluh November, Indonesia.

• Dr. Suhartono, Institut Teknologi sepuluh November, Indonesia.

• Prof.Dr. H.J.Zainodin, University Malaysia Sabah, Malaysia.


International Conference Organizing Committee:

• Prof. Dr. Karan Singh, University of North Texas, Health Science Center at Fort Worth, Texas, USA.
• Prof. Dr. Ismail Bin Mohd, Faculty of Sciences, Universiti Malaysia Terengganu.
• Assoc.Prof. Dr. Noor Akma Ibrahim, Institute for Mathematical Research, Universiti Putra Malaysia.
• Dr. Iing Lukman, Faculty of Economics, Universitas Malahayati Bandar Lampung.
• Dr. Faiz A.M.Elfaki, Kulliyah of Engineering, International Islamic University of Malaysia, Malaysia.
• Dr. Eng. Admi Syarief, Faculty of Sciences, Universitas Lampung, Indonesia.
• Agung E. Hadi, M.Sc, Faculty of Engineering , Universitas Malahayati Bandar Lampung, Indonesia.
• Associate Prof. Dr. Buhri Arifin, Universiti Malaysia Terengganu
• Dr. Warsono, Faculty of Science, Universitas Lampung, Indonesia
• Dr. Hardoyo, Faculty of Engineering , Universitas Malahayati Bandar Lampung, Indonesia.
• Prof. Dr. Bustanul Arifin, Faculty of Agriculture, Universitas Lampung.
• Dr. Suhartono, Institut Teknologi Sepuluh November, Surabaya, Indonesia.
• Dr. Bevina D. Handari, Universitas Indonesia, Indonesia
• Prof. Dr. Hon Wai Leong. National University of Singapore.
• Prof.Dr. H.J.Zainodin, University Malaysia Sabah, Malaysia
Call For Papers

Scientists, experts, PhD and Masters Students as well as Bachelor degree students or anybody are invited to submit papers.

Guidelines for preparing abstracts:
Abstract is a shortened or condensed version of the essential points of the paper. The length of the abstract is not more than 250 words in both in hard copy and electronic form indicating the following:

1. Relevance to the seminar topic.
2. Suggested title not more than 100 characters.
3. The author (s), address and email are below the title of the paper.


Language
The official language of the conference is English.

Important Date. Submission Deadlines:

1. Submission of Abstract………………………… April 15, 2010
2. Notification of Abstract acceptance…………… April 20, 2010
3. Submission of full papers…………………….. May 5, 2010
4. Notification of full papers acceptance………… May 10, 2010.

Conference Venue
The conference will be held at Universitas Malahayati, Bandar Lampung, Indonesia.

SECRETARIAT OF INTERNATIONAL CONFERENCE
Faculty of Economics, Universitas Malahayati
Jalan Pramuka No.27 Kemiling, Bandar Lampung
Telp: 62-721-271114, Fax: 62-721-271119
E-mail: iingl@univ-malahayati.ac.id, alfha_usman@yahoo.com, anitakusuma.dewi@yahoo.com

FIFTH FORUM FOR BUSINESSWOMEN IN ISLAMIC COUNTRIES

Islamic Chamber of Commerce and Industry (ICCI) BPW – Egypt
Egyptian Business Women Association (EBWA) United Nations Development Programme (UNDP) Islamic Development Bank (IDB)

FIFTH FORUM FOR BUSINESSWOMEN IN ISLAMIC COUNTRIES


UNDER THE THEME OF

“Empowerment of Businesswomen to Meet the MDGs
And Intercultural Dialogue”













22 – 24 April 2010
Mena House Oberoi Hotel
Cairo, Arab Republic of Egypt


Background:

The Islamic Chamber of Commerce and Industry being the only Institution within the OIC representing the private sector was given the mandate by the 9th Session of Standing Committee for Economic and Commercial Cooperation of OIC Countries (COMCEC) held in September 1993 in Turkey to organize private sector meetings, with the objective of bringing the private sector in the forefront of economic development.

As per the OIC 10-Year Plan of Action and the role assigned to the Islamic Chamber for capacity building of women in the Member Countries, Islamic Chamber of Commerce & Industry (ICCI) has initiated a comprehensive program for the economic empowerment of businesswomen of the Member States to realize the economic potential of businesswomen in the OIC Member Countries. This endeavor is also in line with Millennium Development Goals (MDGs) of the United Nations (UN).

This has been done by organizing Businesswomen Forums in Islamic Countries on annual basis. In 2005, the First Forum for Businesswomen in Islamic Countries was organized in Sharjah, U.A.E. under the theme of “Partners in Economic and Social Development”, while the Second Forum for Businesswomen Forum was held in Kuala Lumpur, Malaysia in 2006 under the theme of “Creating Opportunities through Networking”, the Third Forum for Businesswomen was held in Doha, State of Qatar 13-15 January 2008 under the theme of ‘Micro-Credit Financing: the way forward for economic prosperity’ and the Fourth Forum for Businesswomen was organized in Damascus, Syrian Arab Republic from 2 to 4 November 2008, under kind patronage of H.E Asmaa al-Assad, First Lady of Syria. The theme of the Forum was “Role of Culture, Media and Tourism in developing sustainable economic prosperity.”

These events had been organized with the collaboration of the Islamic Development Bank (IDB), Special Unit for South-South Cooperation, UNDP, Member Chambers, and Businesswomen Association. Each Forum was attended by over 300 delegates representing around 45 OIC Member Countries and non OIC Countries are also welcomed and International Organizations.

It is pertinent to note that the Businesswomen Forum have become an annual event of the Islamic Chamber and the number of participation at each Forum is increasing as the Forum provides excellent opportunities to businesswomen from Islamic countries in identifying the challenges, determining the areas which need support, building network among themselves, exchanging experiences and know-how, identifying new markets, and expanding the existing level of economic ties amongst their respective business communities through trade and investment.

Outcome of the previous Forums:

The successes of the previous Forums and the recommendations adopted therein were duly followed and implemented which led to the establishment of:
• Businesswomen Information Network (www.oic-bin.net);
• Family Bank in Sudan with a capital of US$35 million;
• Incubation Center and Buying House in Multan, Pakistan;
• Islamic Solidarity Fund for Development for poverty reduction by IDB with the capital of US$10 billion.

Fifth Forum for Businesswomen in Islamic Countries:

On the kind invitation of Egyptian Businesswomen Association, Islamic Chamber of Commerce & Industry (ICCI) is organizing the Fifth Forum for Businesswomen in Cairo, Egypt on 22-24 April 2010, in collaboration with the Islamic Development Bank (IDB) and Special Unit for South-South Cooperation, under the theme of “Empowerment of Businesswomen to Meet the MDGs & Intercultural Dialogue .

Goals and Objectives:

The aim of the Forum is to create in the long run, a platform for businesswomen to share their experiences and know-how, to discuss new ideas, to identify business opportunities and to link business partners. It is an ideal platform for international cooperation, with each country being able to acquire specific know-how on its partners, as well as sharing intercultural competence and innovative ideas and pursuing cultural exchange. It is not only political and economic developments which will drive the increasing links between the OIC Member Countries, but also the cultural, scientific and transnational projects taking place between the regions and across the whole area.

In addition to the above, the main objectives of the Forum are to enhance the role of businesswomen to contribute effectively to the economies of the OIC Countries, as well as to:
• build the Businesswomen / entrepreneurs’ capacities to perform efficiently and effectively.
• promote and market the services being offered by the businesswomen through OIC-BIN portal (www.oic-bin.net)
• enhance and highlight the role of businesswomen in major regional and international conferences and events.
• create awareness about value addition and product diversification.
• build a network with businesswomen locally, regionally and globally across the world from OIC & OIC countries.
• provide a range of services for young entrepreneurs, like training and counseling.
• recognize and reward the keen efforts that businesswomen of OIC countries are offering to contribute to their economies.
• discuss challenges being faced by women entrepreneurs to better market access in OIC Countries.

Structure of the Forum:

With the exception of the field day visit during the forum, the two days will consist of four plenary sessions, each session will focus on a main subject and will comprise of a plenary discussion followed by group discussions. The group work would allow for in-depth debates on the given subject.


Activities of the Forum

The Forum will comprise of the following sessions:
1) Inaugural session
2) Working sessions
3) Networking (Lunches / Dinner & Tour to industrial Units)
Accompanying Exhibition
An Exhibition will also be held on the sidelines of the Forum. The Exhibition will cover the products of Women Entrepreneurs, Business Women Associations & Women participating in the Congress & Companies owned by women.

Topics of the Papers presented during the Forum
1) Economic Empowerment of Women through Training & Capacity Building .
2) Women entrepreneurs’ role in the socio-economic development.
3) Challenges being faced by businesswomen in OIC Member Countries
4) Role of the technology in promoting women participation in knowledge based market economy
5) Areas of Progress and Growth of women entrepreneurs
6) Global best practices in decision making for Businesswomen by the International Organization
7) Intercultural dialogue among Business Women & Entrepreneurs across the World for Building successful global Partnerships and Alliances
8) Role of international agencies for Women Entrepreneurship Development.
9) Empowerment of Women in Trade to gain access to global Markets .
10) Presentations of Models of successful projects for Economic Empowerment of Women e.g. Business Development Centers, Business Incubators ….

Institutions to be invited for the Forum:
• Private Sector, Women entrepreneurs and Business Women from OIC Countries (Non OIC Countries are Welcomed).
• Women’s Associations/Organizations from the OIC Member Countries (Non OIC Countries are Welcomed).
• Local , Regional & International organizations targeting Women Empowerment & Economic Growth & Empowering Women in the Private Sector .
• UN Agencies .
• National institutions responsible for Development of Women in General.
• Ministries of Gender, Economy, Trade, and Finance in Islamic Countries.
• Federations / Unions / Associations / Councils and Chambers of Commerce and Industries in the Islamic Countries.
• Financing Corporations, Islamic Banks, including IDB, World Women Banking.
• National Councils of Women
• International Figures & Role models targeting Women Empowerment .

AN OVERVIEW ABOUT ORGANIZERS ( ICCI, EBWA):

Islamic Chamber of Commerce & Industry (ICCI):

The Islamic Chamber is an affiliated organ of the Organization of Islamic Conference (OIC) and represents the private sector of 57 Islamic Countries. It aims at strengthening closer collaboration in the field of trade, commerce, shipping, banking, tourism, women development, SMEs, privatization, information technology, promotion of investment opportunities and joint ventures in the Member Countries. Its membership is comprised of the National Chambers / Unions / Federations of Chambers of Commerce and Industry of the member countries. ICCI provides guidance to businessmen and industrialists in identifying joint venture projects, works towards the expansion of Intra-Islamic trade by disseminating information on trade opportunities and by providing the Members a Wide Area Computer Network with all trade and industry related information as well as encourages the exchanges of expertise and the transfer of technology among Member countries. ICCI also arranges provision of technical training to private business operators and staff of member chambers. For more information, please visit www.iccionline.net .

New Vision of ICCI:

Realizing the fast moving global economic scenario and the need to further promote the dynamic role of the private sector, the Islamic Chamber of Commerce & Industry under the title of "New Vision" has new projects, which are expected to have a most significant catalytic impact in expanding portfolio of trade and investment related initiatives, tourism exchanges and capacity building projects in LDCs. The projects are:

1) The International Organization for Zakat.
2) Emmar International Bank.
3) The International Foundation of Awqaf (Islamic Endowments)
4) Manpower Recruitment and Training Companies.
5) Establishment of Inter-Tourism Development Companies.
6) Committees on Consolidating Economic and Commercial Cooperation, implementation of OIC Plan, Exchange of Experience, Building Mutual Bargaining Attitudes and Cooperation Protocol.
7) Foras Investment Co.
8) Business Owners Union
9) Ommar Al-Ard
10) Islamic Rating & Certification Agency

EGYPTIAN BUSINESS WOMEN ASSOCIATION (EBWA)
WHAT IS EBWA?
At a time when Egypt was crossing to Globalization and many Economical Groups were represented, Business Women in Egypt had to have a body to represent them and give guidance to those existing Business Women and to those who want to start their Businesses with the main target of Economic Empowerment of Women .
That is why EBWA was established.
It is the First and only Central organization for Business Women established in Egypt Since 1995.







Objectives:
EBWA was established to accomplish certain objectives concentrating on Economic Empowerment of Women through the promotion of Entrepreneurial culture , the Development of the Business Women’s career and the creation of young Business Women generation who are able to start their own Business and are capable of managing their enterprises.
Such objectives are as follows:
- To Assist in Capacity Building, and Training of Women Entrepreneurs.
- To Support Small and Medium Enterprises owned by women .
- To Assist Women Entrepreneurs in Product Development & Adding Value to their products.
- To establish Business Development Centers , and Business Incubator to build the Capacity of Women Entrepreneurs to play their role in the Economy .
- To prepare and organize guidance and information to encourage women to carry out productive projects.
- To organize and hold conferences, seminars, lectures and workshops to raise the awareness of Women in different fields of Business .
- To conduct economical and social feasibility studies for Business projects for Women starting their Business.
- To study the needs of domestic market and to encourage the establishment of new appropriate projects contributing to Community Development .
- To organize Training programs in different fields targeting development of skills and talents of Women.
- To provide financial , accounting and legal services to women.
- To issue a Bulletin to act as a tool to disseminate information and exchange of experience.
- To promote Women to have Access to Regional & Global Market .
- To organize various exhibitions and fairs locally, regionally & internationally for marketing of women products .
- To network & co-operate with different associations working in the field of women Empowerment all over the world.

ORGANIZERS:

Islamic Chamber of Commerce & Industry (ICCI)
St. 2/A, Block-9, KDA Scheme 5,
P.O. Box: 3831 Clifton, Karachi-75600,
PAKISTAN.
Tel. (92-21) 5874910, 5874756, 5830646
Fax. (92-21) 5870765, 5874212
Email: icci@icci-oic.org
Website www.iccionline.net
Egyptian Business Women Association EBWA – BPW – Egypt Secretariat, 14 Syria St., Mohandeseen, Cairo,
ARAB REPUBLIC OF EGYPT
Tel : +202-33368304, +202-7495670
Fax : +202-7495671
Email: ebwaegypt@yahoo.com
asfour2712@yahoo.com

www.ebwa.info